China's July HSBC services PMI falls to lowest in nearly 9 years

BEIJING Mon Aug 4, 2014 9:45pm EDT

BEIJING Aug 5 (Reuters) - China's services sector grew at its slowest pace in nearly nine years in July as new business slowed to a trickle, a private survey showed on Tuesday, indicating a recovery in the broader economy is still fragile.

The services purchasing managers' index(PMI) compiled by HSBC/Markit fell to 50.0 in July from 15-month high of 53.1 in June, the lowest reading since November 2005 when the data collection began.

The survey pointed to a stagnation of service activity as a reading above 50 in PMI surveys indicates an expansion in activity while one below the threshold points to a contraction.

In a sign that companies have grown more reluctant to spend, a sub-index measuring new business growth hit a 68-month low of 50.3 in July.

(Reporting By Xiaoyi Shao and Koh Gui Qing; Editing by Kim Coghill)

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